In my last column we discussed how a Bond-Only Surety Managing General Agency, like South Coast Surety, can act as an independent insurance agent’s own surety department. Today we are going to chat about the many businesses that can benefit and grow their business with a good Surety relationship established for bidding and bonding contracts.
Most often, when you hear the mention of a “Contract Surety Bond” in any conversation it is in conjunction with bidding for and bonding a construction (sticks and bricks) contract. This makes sense since the surety industry, as we know it today, was created out of legislation in regards to federal public works projects to assure performance of the contract and payment to certain laborers and materials suppliers. So yes, any business that is involved in construction can probably benefit from a surety program, but many other companies provide products and services beyond construction to public entities.
Private industry has always provided goods and services to our government. Supply and Service Contract awards make up a significant portion of governmental budgets across the country.
Supply type accounts can include; Office/School Supplies, Flooring/Counters, Fencing, Modular Buildings, Work Trailers, Landscape, Portable Restrooms, Cabinets, Printers, Computer/Electronic Equipment, Irrigation Equipment, Boiler/Generators, Low Voltage Wiring, Software, Wireless Installations, Specialized Vehicles, Concrete Piping and many more.
Service type work can include; Guard / Security, Transportation/Bus, Janitorial, Entertainment, Landscape, Photography, Window Washing, Pest Control, Food Service, Wireless Networking, Street Sweeping, Boiler/Generator Retrofit, Tower Maintenance, IT Support Medicaid Management, Social Services, Educational Testing, Waste Hauling, Debt Collecting and much more.
Recognizing that non-construction contracts were quite different from the construction contracts that created the corporate surety world, the surety industry gave Supply and Service Contract Bonds their own class code (Class Code 500) in 2004. Many contracts that could fall into this class are possibly still being reported as construction type contracts. Even with that said, the growth in the reported direct written premium over the years on record is very impressive. Starting with $15,077,697 reported in 2005 to the $104,999,990 reported in 2015.
What this all means is that there are a significant number and types of businesses, outside the field of general construction, which can benefit from a strong surety relationship. Many landscapers, janitorial companies, transportation firms, maintenance organizations, general suppliers, modular installers, IT companies and many others can grow their business with the assistance of having a surety program. So as a business owner, you should be looking around for such opportunities. If you are an Independent Insurance Agent, you should be reviewing with all your business clients, the potential of establishing a Surety Line of Credit.
In my next column I will layout the values of adding a Professional Surety Agent to your advisory team of professionals, along with a strong insurance agent, accountant and attorney.
I have processed 2 defective title bonds through South Coast Surety and I am the type that gets worried for any little detail and want to make sure everything is done correctly the first time to prevent double work for myself and everybody. Knowing how I am both times I had to call customer service and they answered every little question I had in a very nice and gratifying way that made me feel I would not have any problems in which I did not. South Coast Surety has the ultimate best customer service.
Gaby - CA
I was shopping for a surety bond for the first time and having trouble communicating with several different companies. When I contacted South Coast Surety they responded quickly and performed the transaction quick and easy. I might have been able to find a lower price, but their professionalism was worth a couple extra dollars.
KG C. - CA
We are opening up a Mental Health Residential Treatment Center and needed a Surety bond since we will be handling some clients cash resources. I reached out to South Coast Surety, they sent me an application, paid our premium and had our bond sent to us immediately. Everyone I spoke to and emailed was courteous, attentive and responded very quickly. We will most definitely continue to get all of our bond services from South Coast.
John F. - CA
Great customer service from South Coast Surety. When I had questions about the bond and process, their customer service team assisted me with a sense of urgency and answered my questions. I recommend using their services. I will be a returning customer.
P&C B. - CA
I needed a surety bond and was referred by another company to south coast. I am very impressed with the level of customer service in every stage of issuing the bond, the rapid response to the get the bond issued and communication with the team. Great team and awesome service. I highly recommend South Coast Surety for you bond needs.
Mirwais A. - CA
I was in need of obtaining my CA Insurance Bond. I was able to obtain my required Bond quote online within minutes. I approved the quote and requested the Bond to be issued. On the same day, I received the Evidence of Coverage. Could not ask for better pricing or better service. I highly recommend South Coast Surety to meet a wide range of Bonding needs.
Udo G. - NJ
South Coast Surety has been proudly providing surety support to all fifty U.S. states for twenty years. Starting out as a small agency with a dream in San Clemente, California, we have steadily grown into one of the largest bond-only agencies in the nation. We write all commercial bonds and contract bonds for every American business and industry. Our greatest achievement is helping our clients grow their business alongside our own through coaching and obtaining larger bonding limits at the best rates. We work hard for our clients and take pride in bonding businesses that have been declined by our competitors.